Minister: Armenian Banks Provided Privileged Agricultural Credits To Farmers In The Amount Of 4.2 Billion Drams

16.05.2011 20:52
Minister: Armenian Banks Provided Privileged Agricultural Credits To Farmers In The Amount Of 4.2 Billion Drams

YEREVAN, May 16. /ARKA/. Armenian banks have already provided privileged agricultural credits in the amount of 4.2 billion drams to about 6 thousand farms, said Armenian Minister of Agriculture Sergo Karapetyan during the parliament discussions of state budget 2010 on Monday.

“Some farmers are dissatisfied with the process of credit provision. It is not related to state procedure but difficulties with credit redemption in the banks last years”, said Karapetyan.

Today, crediting is implemented by four commercial banks.

The Minister also denied the information that mortgage property should undergo formal procedures only in Yerevan. “The process of mortgage property is significantly facilitated, so there will not be any problems with it”, he said.

It is expected that farmers will get credits in the amount of about 10 billion drams. Credits are provided on the following terms: up to one year - 2-3 million drams with redemption date of minimum six months.

The second component of the program is the provision of similar credits in more than 200 vulnerable communities where the state bears the responsibility of subsidization of 6% of percent rate.

According to the data of Armenian Central Bank, in December 2010, average percent rate of agricultural credits in drams for one year was 23.4% and from 1-5 years – 21.9%. Agricultural credits in foreign currency were provided by percent rate of 15% annually for one year and 18.3% - from 1-5 years. ($1 – 373.66 drams). --0--


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